LME base metals prices edge down; stocks witness outflows

Base metals prices on the LME edged downward, with nickel witnessing the steepest decline of 1.89%. Similarly, metal stocks at LME-registered warehouses showed a negative trend, except for nickel.

Aluminium prices dropped because China ramped up production close to last year's highs. In May, output rose 5% y-o-y to 3.65 million tonnes (mnt), nearing an annual rate of 43 mnt, similar to peaks seen in September and October last year.

COMEX market

Copper prices on COMEX dipped 1% to $10,053/t against the previous closing.

India market

In India's non-ferrous market, BigMint's assessment of domestic copper armature scrap prices stood at INR 786,000/t ex-Delhi. Meanwhile, aluminium tense scrap prices have remained rangebound, with ex-Delhi NCR at INR 181,000/t and ex-Chennai at INR 182,000/t.

Meanwhile, India's imported aluminium scrap prices have gained slightly this week amid a marginal rise in LME aluminium prices and a slight increase in buying activity in the European region ahead of the summer break.

Global updates

Nornickel to move smelting plant to China

As per secondary sources, Nornickel is in talks with China Copper to move its copper smelting operations to China, responding to US and UK bans on Russian metal exports. This shift aims to align production closer to major consumption markets and follows Nornickel's plan to close its Arctic facility.

Congo conflict jeopardises crucial metals trade

UN experts warn that Congo's main coltan mine can't trade due to war. Metals from Central Africa risk UN sanctions for funding conflict in eastern Congo. Gold, tin, and tantalum trade supports armed groups and fuels severe human rights abuses.

Codelco looking to purchase share in Teck's copper mine

Chile's state-owned Codelco is exploring the acquisition of a 10% stake in Teck's Quebrada Blanca copper mine, currently held by Enami, in a potential $500 million deal. This move is seen as strategic for Codelco to access a significant copper asset while assisting Enami in bolstering its finances amid operational challenges.

Oil prices slip

Oil prices fell on Wednesday due to lower-than-expected inflation in China, a major crude importer. Sentiment was also affected by ceasefire talks in Gaza. Traders are watching closely for their impact on global oil supply and demand amid geopolitical uncertainties.

Brent oil futures were down slightly by 0.47% to $84.26 per barrel, while crude oil WTI futures edged down by 0.41% to $81.08 per barrel at the time of reporting.

Natural gas prices dip

Prices of natural gas were recorded at $2.34/MMBtu, down 0.09%.

Dollar index

The dollar index, which gauges the value of the greenback against a basket of six different currencies, hovered at 105.13, slightly down by 0.01%.

The rupee was recorded at INR 83.49 against the dollar, largely stable compared to the previous closing.